Singapore’s bid to tackle high rents suffered a setback after a pilot site for long-term serviced apartments failed to attract developers.

The Urban Redevelopment Authority said in a statement Wednesday that the Upper Thomson Road site in the city’s suburbs received no bids. The location was one of two earmarked for construction of some apartments requiring a minimum three-month stay, up from the current seven-day requirement.

The site offers are part of efforts to tackle a major surge in residential rents, which remain near multi-year highs despite dropping in recent quarters. But the property market is slowing, with new home sales falling for a second month in May. That makes developers reluctant to bid aggressively on new projects.

“Market sentiment is weak, and caution rules the day” for developers, said Nicholas Mak, the chief research officer at Mogul.sg, a property portal. Developers may also be holding back because they think “it’s very difficult” to attract expatriates to the location in the city’s north, he said.

The other pilot site for long-term serviced apartments on the fringe of the city centre drew only one bid, which was accepted in April.

  - Bloomberg